Credit Card Processing Fee Information
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In July of 1999 Financial Management Services implemented a new Accounts Receivable System. One of the many advantages of the system is that the University can now accept multiple payment methods (e.g., checks, credit cards, wire transfers) from our customers to pay invoices. However, the credit card issuer (e.g., Visa, Discover) charges a processing fee. If your organization chooses to accept credit card payments your organization will be responsible for paying the credit card processing fee.
The credit card processing fee is typically made up of an interchange fee, an assessment fee, an interchange per item, and an additional per item processing fee. These rates depend on the credit card the customer uses (e.g., Visa, Mastercard, Discover, American Express) as well as the category of the credit card (e.g., check card, retail, standard), and will be allocated appropriately.
Currently, the Accounts Receivable Supervisor receives a
credit card statement at the end of each month and then distributes the charges
to the account on the invoice and object code 4512 (Credit Card Processing Fee
Expense).
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